Marine cargo clauses run from the 1963 old clauses (S.G. Policy) to the 1982 and 2009 new clauses (ICC). We set out which clause covers which risks, and which choice suits which type of cargo, from the standpoint of a brokerage that compares six insurers.
The traditional clauses originating at Lloyd's of London. The policy body perils clause plus three coverage grades under the Institute Cargo Clauses (F.P.A / W.A / A.R).
The S.G. Policy was retired and the MAR Form introduced. Coverage grades were reorganised into ICC (A / B / C), with excluded perils clearly listed.
Clarified the definition of the Assured, widened the scope of the Transit Clause, and added terrorism and chemical/biological/radioactive exclusions. The current standard in the Korean market.
Korea's marine cargo market today uses the 2009 new clauses (ICC A/B/C) as standard, with the old A.R / W.A / F.P.A still used in some trades. The applicable clause must be stated when the policy is issued.
| Risk / type of loss | ICC(A) All Risks |
ICC(B) Restricted |
ICC(C) Minimum |
|---|---|---|---|
| Fire · explosion | ● | ● | ● |
| Stranding · sinking · capsizing · grounding | ● | ● | ● |
| Overturning / derailment of land conveyance | ● | ● | ● |
| Collision / contact of conveyance with another object | ● | ● | ● |
| Discharge of cargo at a port of distress | ● | ● | ● |
| General average sacrifice | ● | ● | ● |
| Jettison | ● | ● | ● |
| Earthquake · volcanic eruption · lightning | ● | ● | × |
| Washing overboard | ● | ● | × |
| Entry of sea / river / lake water (partial loss) | ● | ● | × |
| Total loss of any package lost overboard / dropped during loading or unloading | ● | ● | × |
| Deliberate damage / destruction by a third party | ● | × | × |
| Any other fortuitous accident (all-risks cover) | ● | × | × |
| Common exclusions | |||
| Wilful misconduct / unlawful act of the Assured | Excl. | Excl. | Excl. |
| Ordinary leakage / natural wastage | Excl. | Excl. | Excl. |
| Insufficient packing | Excl. | Excl. | Excl. |
| Inherent vice / nature of the cargo | Excl. | Excl. | Excl. |
| Loss proximately caused by delay | Excl. | Excl. | Excl. |
| War · strikes (separate clauses required) | Excl. | Excl. | Excl. |
● = covered / × = not covered. ICC(A) covers all fortuitous loss except the listed exclusions (all-risks, "covered unless excluded"); ICC(B/C) cover only the named perils ("covered only if listed").
| Risk / type of loss | A.R All Risks |
W.A With Average |
F.P.A Free from Particular Average |
|---|---|---|---|
| Fire · explosion | ● | ● | ● |
| S.S.B.C (sinking, stranding, burning, collision) | ● | ● | ● |
| General average sacrifice | ● | ● | ● |
| Loss during discharge at a port of distress | ● | ● | ● |
| Total loss of any package during loading / unloading | ● | ● | ● |
| Partial loss from heavy weather | ● | ● | × |
| Sea-water damage (partial loss) | ● | ● | × |
| Any other fortuitous external accident | ● | × | × |
Old and new clauses are not a one-to-one match. As a rough guide A.R ≈ ICC(A), W.A ≈ ICC(B), F.P.A ≈ ICC(C), but exclusions and wording differ, so the outcome at claim time can differ. We can compare which clauses the six insurers apply in practice — ask cargoinsu.
The new clauses for air-carried cargo. Cover is broadly equivalent to ICC(A), reflecting the characteristics of air transport (shorter transit, fewer handlings). Exclusions are almost identical to ICC(A).
The old clauses for air transport, used before ICC(Air) and still applied in some trades. Cover follows the old A.R, adjusted for air transport.
Named-peril clauses such as ICC(B/C), W.A and F.P.A cover only the listed perils. Where wider cover is needed, additional-risk extensions broaden the protection. ICC(A) and A.R are all-risks in principle, but for certain cargo some additional risks are still spelled out separately.
Damage from rain / fresh water ingress
Loss or theft of cargo
Cargo jettisoned or washed overboard
Damage from external impact
Liquid leakage / shortfall in quantity
Damage by hooks during handling
Contact with Oil and/or Other Cargo
Damage from condensation / heat
Self-ignition of the cargo
Ingress of foreign matter
Mould from humidity / poor ventilation
Excluded under all cargo clauses. Cover can be extended by attaching the Institute War Clauses (Cargo) for an additional premium.
On some Middle East / Southeast Asia routes, automatic War cover is standard.
Excluded under all cargo clauses. Extend by attaching the Institute Strikes Clauses (Cargo).
SRCC = Strikes, Riots, Civil Commotions. Terrorism is included from the 2009 new clauses.
N2N Insurance Brokerage, which operates cargoinsu.com, compares the clauses of six insurers (AIG · Chubb · DB · Hyundai · KB · Meritz) side by side.
